Off-plan sales are growing once again in Dubai

After last few years of sluggish growth, Off-plan Dubai properties are making a comeback. Due to the improved economic performance and other important factors across the Emirates, buyers, both local and foreign, are turning their heads back to off-plan projects in Dubai.

What are off-plan properties?

Off-plan properties are properties, which have not been constructed but are already up for sale. In some countries, they are called, pre-selling properties. They are referred to as off-plan because they are sold off from a plan – while they are still in the building process.

Generally speaking, the closer the completion of a project, the higher the price will be. In theory, investors buy off-plan properties at a much lower price to gain a higher return on investment.

Why off-plan properties became unattractive

Starting around 2015, off-plan projects have witnessed a slowdown in sales. Traditionally off-plan properties have been popular in the UAE. However, because of certain factors, off plan sales lost its shine over the last few years.

The primary reason off-plan properties have shown a slow growth is because of the overall downward trend of the real estate in UAE. With off-plan properties, you are paying a future price. Of course, this seems plausible as long as the market is stable or shows an upwards trend. However, this wasn’t the case for the past few years, and thus, the demand for off-plan decreased.

Other factors that turn investors away from off-plan projects include the possibility of having your property not delivered on time, having to wait before you can use the property and high volatility in market trends.

Why off-plan properties are in demand again?

The main advantage of getting an off-plan Dubai real estate is the lower price as well as the flexible payment options offered by developers. This has always been the driving point of selling off-plan properties.

While the lower prices attract investors, there have been certain developments that have led to the renewed interest to off-plan.

For one, there has been a huge demand in the housing market from expats. Not only that, but more and more expats are expected to add to that number as the UAE lays out new long-term & permanent residency visas. As the UAE and specifically Dubai welcome more expats, the expansion of the real estate sector is expected to continue.

Another factor contributing to the increased demand in off-plan is the Expo 2020. As Dubai is nearing this monumental event, global investors are flocking to the country. The overall robust economy of Dubai would further increase real estate demand.

Learning more about the real estate market

If you are planning to invest in the real estate market or even plan to buy apartments in Dubai, you would need someone who can guide you through the complete process. From researching your options to closing the deal, you would surely be happy to have Rocky Real Estate by your side. They have been in the real estate industry for more than 40 years now. They are one of the best real estate experts who can help you make a solid investment. Give them a call today!